If you’re thinking of starting a business in Singapore, you may have heard of the term “nominee director.” But just what does this mean, and how can it benefit your business? In the following paragraphs, we’ll have a closer look at Singapore nominee director services and how they are able to help you achieve your business goals.
Exactly what is a Nominee Director?
A nominee director is really a person or a company that’s appointed to do something as a director of an organization on behalf of someone else or entity. The nominee director doesn’t have any executive power or authority within the business, but rather acts as a placeholder for the true director or owner of the business. In nominee director service in Singapore , the nominee director’s name appears on the official company records and documents, but they usually do not make any decisions or take any actions on behalf of the company.
Why Do Companies Use Nominee Director Services in Singapore?
There are several reasons why companies use nominee director services in Singapore:
Compliance with local regulations: Under Singapore law, every company will need to have at least one director who’s ordinarily resident in Singapore. Because of this the director must be a Singapore citizen, permanent resident, or anyone who has been issued an Employment Pass or Entrepreneur Pass. If you are a foreigner who’s starting a business in Singapore, you may not meet these requirements, and for that reason, you need to appoint a nominee director who satisfies these criteria.
Protection of privacy: Some business owners may prefer to keep their names off the public records and documents of the company. By appointing a nominee director, the business enterprise owner can maintain their anonymity while still to be able to operate their business.
Facilitation of business operations: In some cases, the business owner may not be in a position to be physically within Singapore to control the day-to-day operations of the business. By appointing a nominee director who’s locally based, the business enterprise owner can make sure that their company complies with local regulations, and that operations run smoothly.
Expansion into new markets: In case a business owner is seeking to expand their business into new markets, they could desire to appoint a nominee director who has understanding of the local market and may help the company navigate the neighborhood business environment.
Benefits of Using Nominee Director Services in Singapore
There are several advantages to using nominee director services in Singapore:
Compliance with local regulations: As mentioned earlier, every company in Singapore will need to have a minumum of one director who is ordinarily resident in Singapore. By appointing a nominee director who satisfies these requirements, you can make sure that your company complies with local regulations.
Protection of privacy: If you value your privacy and desire to keep your name off the public records and documents of your company, a nominee director will help you achieve this.
Facilitation of business operations: When you are unable to be physically present in Singapore to control your company’s operations, a nominee director might help make sure that your company complies with local regulations, and that operations run smoothly.
Flexibility: Nominee director services are flexible, and you could appoint a nominee director for for as long or as short a period as you need. This could be especially useful should you be testing the waters in a new market and are not sure how long you need to stay in Singapore.
Cost-effective: Nominee director services can be more cost-effective than hiring a full-time director, especially if you only need someone to become a placeholder or for a brief period of time.